Asos falls £291m into the red as shoppers return to high street

Asos expects sales to fall by at least 10% for the year and to make an underlying profit of no more than £60m. Photograph: Dado Ruvić/Reuters

Asos has dived £291m into the red after sales slumped in what the online fashion retailer called a “challenging trading backdrop”, with shoppers returning to physical high street stores and cutting spending on non-essentials.

Sales fell by 8%, including a 10% drop in the UK, in the six months to 28 February – far worse than the 3% forecast by the City. The company said it had deliberately shifted away from unprofitable sales and suffered from weak consumer demand and the December postal strikes.